MIRA
INFORM REPORT
|
Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
DOOSAN HEAVY INDUSTRY & CONSTRUCTION CO., LTD. |
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Registered Office : |
555, Gwigok-dong, Changwon-si, Gyeongsangnam-do - 641-792 |
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Country : |
Korea |
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|
Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
09/20/1962 |
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Legal Form : |
Listed Company |
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Line of Business : |
Manufacture of Other Engines and Steam and Gas Turbines |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Status : |
Excellent |
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|
|
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Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
Basic
|
Company
Name |
DOOSAN HEAVY INDUSTRY & CONSTRUCTION
CO., LTD. |
|
Registered Address |
555, Gwigok-dong, Changwon-si,
Gyeongsangnam-do, Korea |
|
Zip Code |
641-792 |
|
Tel |
+82-55-278-6114 |
|
Fax |
+82-55-264-5551~2 |
|
E-mail |
heekook.choi@doosan.com;yiltaek.chung@doosan.com;seokhee.ko@doosan.com |
|
Website |
www.doosanheavy.com |
|
Trading Address |
1303-22, Seocho-dong ,Seocho-gu, Seoul,
Korea (C.P.O Box 1826) |
|
Tel |
+82-2-513-6114 |
|
Fax |
+82-2-513-6200 |
|
Other Address |
1303-22, Seocho-dong, Seocho-gu, Seoul
137-920 Korea |
|
Tel |
+82-2-513-6114 |
|
Fax |
+82-2513-6200 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Other Engines and Steam and Gas Turbines |
|
Main Business |
Turbine Generator, Desalination Plant |
|
Sub Business |
Apartment Building Construction |
|
Established (mm/dd/yyyy) |
09/20/1962 |
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Commercial or industrial construction(72131600) |
|
Sell |
Post(30102900) |
|
Sell |
Installation of structural materials or basic shapes |
|
Sell |
Nuclear reactor equipment(26142100) |
|
Sell |
General building construction(72130000) |
|
Sell |
Steel plate(30102204) |
|
Sell |
Atomic and nuclear energy machinery and equipment(26140000) |
|
Sell |
Industrial filtering and purification(40160000) |
|
Sell |
Dust collectors(40161503) |
|
Sell |
Odor control equipment(47101530) |
|
Sell |
Boilers(40102000) |
|
Sell |
Nuclear reactor control rod systems(26142106) |
|
Sell |
Nuclear fuel equipment(26142200) |
|
Sell |
Steel(11101704) |
|
Sell |
Industrial machinery components and accessories(23153100) |
|
Sell |
Steel housings or cabinets(31261503) |
|
Sell |
Desalination equipment(47101508) |
|
Sell |
Turbine engines(26101506) |
|
Sell |
Power generators(26111600) |
|
Sell |
Lifting equipment and accessories(24101600) |
|
Sell |
Marine propellers(25111902) |
|
Sell |
Crankshaft(26101749) |
|
Sell |
Engine components and accessories(26101700) |
|
Sell |
Rotors or stators(26101803) |
|
Sell |
Lifting equipment and accessories(24101600) |
|
Sell |
Filters(40161500) |
|
Sell |
Water treatment and supply equipment(47101500) |
|
Sell |
Heating equipment and parts and accessories(40101800) |
|
Buy |
Nickel |
|
Buy |
FE-MO |
CEO’s
|
Name |
Lee Nam-Doo |
|
Address |
- |
|
Date of Birth |
02/24/1949 |
|
Title |
Co-President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
Profiles
|
Capital |
523,631,500,000 KRW |
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|
Employees |
4,982 |
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|
Formation |
Listed Company (KSE : 034020) as of 10/2000 A
company of Doosan Business Group |
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Bank Details |
Korea Exchange Bank-Yeoksam Dong Branch |
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Corporate Registered No. |
194211-0000943 |
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Business Registered No. |
609-81-04684 |
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Permit & Licenses |
02/24/1995 ISO 9001 10/04/1995 ISO 9002 12/09/1997 ISO 14001 08/01/1998 ISO 14001 Int’l Trade No.: 671226 |
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Shareholder Position |
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Company History |
1962. 09
Hyundai Yanghaeng (Formerly HANJUNG) Founded 1976. 11
Commencement of Construction for Changwon Plant 1980. 10
Renamed as HANJUNG 1981. 11
Acquired ASME ‘N’ and ‘NPT’ stamps 1982. 06
Changwon Plant completed 1983. 08
Assembly Line for Marine Diesel Engines completed 1987. 03
Technical Research Center opened as HANJUNG Research Center 1990. 02
Capital Increased to 100 Billion Won (Current Capital: 521 Billion
Won) 1993. 01
Gas Turbine Plant completed 1993. 03
Acquired ISO 9001 Certificate 1995. 10
Acquired ISO 9001 Certificate for Construction 1997. 12
Acquired ISO 14001 for Environmental Management System 1999. 11
Integration of domestic power and engine industries into HANJUNG 2000. 01
HSD Engine Corporation established
2000. 10
Listed on the stock market 2000. 11
Received Korea Quality Award 2001. 03
Renamed as Doosan Heavy Industries Construction Co., Ltd. 2002. 00
Supplied main nuclear power systems to the Sequoyah Nuclear Power
Plant, USA, Qinshan Nuclear Power Plant, China, Dangjin Thermal Power Plant
selected as the ‘Power Plant of the Year’ by a U.S. magazine ‘Power
Engineering’ 2003. 00 Largest share
of the global market for HRSG 2004. 00
HRSG, mold steel and cold press work roll selected as‘Global
Products’. Sales reach four trillion won
2005. 00
Obtained KOLAS/OHSAS18001 Management System Certification Received
Korea’s Best Company Award 2005. 00
Acquisition of Daewoo Heavy industrial & machinery (Currently
Doosan Infracore) 2005. 00
Acquisition of a section of reverse osmosis water treatment from AES
in USA (Currently Doosan hydro techology) 2006. 00
Acquisition of Kvaerner IMGB (Currently Doosan IMGB) 2006. 00
Acquisition of Mitsui Babcock (Currently Doosan Babcock) 2006. 00
Establish of a R&D center for desalination in Dobai, UAE 2007. 00
Starting construction work of a manufacturing plant in Vietnam |
The Subject Company
is engaged in supplying industrial facilities to both domestic and international
plant markets. The Company provides comprehensive production and supply systems
ranging from base material-casting and forging systems to nuclear power plants
and hydro and thermal power plants, as well as other industrial facilities,
such as desalination plants, environmental equipment, material-handling
equipment and chemical and petrochemical plants. Headquartered in Korea, the
Company has international operations in China, Japan, Germany, Saudi Arabia and
the United States. During the year ended December 31, 2006, the facilities for
power plants accounted for approximately 44% of total sales.
Management
|
Job Description |
Title |
Name |
Sex |
Nationality |
Date of Birth |
|
Chairman |
Mr. |
Park Yong-Sung |
Male |
Korean |
40.09.11 |
|
Vice Chairman |
Mr. |
Park Yong-Man |
Male |
Korean |
55.02.05 |
|
Co-President & CEO |
Mr. |
Lee Nam-Doo |
Male |
Korean |
49.02.24 |
|
Co-President & CEO |
Mr. |
Baik Han-Sik |
Male |
Korean |
51.05.10 |
|
Co-President & CEO |
Mr. |
Im Sang-Kap |
Male |
Korean |
54.04.10 |
|
Director |
Mr. |
Lee Sung-Hee |
Male |
Korean |
50.09. 02 |
|
Outside Director |
Mr. |
Lee Kun-Woong |
Male |
Korean |
44.02. 03 |
|
Outside Director |
Mr. |
Lee Boo-Sik |
Male |
Korean |
45.01. 31 |
|
Outside Director |
Mr. |
Kim Jong-Sang |
Male |
Korean |
46.09. 01 |
|
Outside Director |
Mr. |
Park Jung-Kyu |
Male |
Korean |
48.02. 10 |
|
Outside Director |
Mr. |
Chung Ku-Young |
Male |
Korean |
38.11.12 |
|
Outside Director |
Mr. |
Kim Sang-Hee |
Male |
Korean |
51.01.25 |
|
Outside Director |
Mr. |
Eun Jong-Il |
Male |
Korean |
40.02.25 |
Park Yong-Sung / Chairman
Born on September 11, 1940 in Seoul, Korea
Education
1959.02 Graduated from Kyunggi
High School
1965.02 Graduated from College of
Commerce, Seoul National University in Seoul, Korea with B.A. in Economics
1969.06 Graduated from New York
University in U.S.A. with M.A. in Business Administration
Professional
Experience
1973.06 Executive Director of
Korea Investment Finance Co.
1974.05 Managing Director of
Doosan Food BG
1980.04 Vice-Chairman of Seoul
National Univ. Alumni (Current)
1984.02 CEO of Oriental Dongyang
Beer Co.
1986.01 President of Korea Judo
Association
1988.04 Vice-Chairman of Korea
Chamber of Commerce & Industry
1989.02 Vice-Chairman of Korea
Olympic Committee
1991.02 Board Chairman of The
Commercial Bank of Korea
1994.07 Chairman & CEO of
Oriental Brewery Co.
1995.09 President of
International Judo Federation (Current)
1998.01 Chairman of International Chamber of Commerce-Korea National
Committee (Current)
2000.05 Chairman of Korea
Chamber of Commerce & Industry (Current)
2000.12 Executive Member of
International Chamber of Commerce
2001.03 Chairman & CEO of
DOOSAN Heavy Industries & Const.
2001.12 Member of International
Olympic Committee (Current)
2002.11 Vice-Chairman of
International Chamber of Commerce
2004.12 Chairman of
International Chamber of Commerce
Awards
1986.12.13 Awarded “Order of
Sport Merit, Maengho Medal”
1987.03.18 Awarded "Order
of Industrial Service Merit, Silver Tower Medal”
1988.09.08 Awarded “Order of
Sport Merit, Cheongryong Medal”
1989.10.16 Awarded “Korea Sport
Award, Promotion Part”
1996.11.04 Awarded “Order of Industrial
Service Merit, Gold Tower Medal”
2000.12.12 Awarded “Award of The
Crown” from Belgium Government
2001.02.21 Awarded “Seosangdon
Award”
2003.06 Awarded of the Medal
of honor from France Government Chevalier
Yoon Young-Suk / Vice Chairman
Born on Sep. 9, 1938 in Seoul, Korea
Education
1958. 02 Graduated from Kyunggi
High School
1964. 02 Graduated from College
of Commerce, Seoul National University
1988 AMP (Advanced
Management) Course at Wharton School, USA
1989 AMP (Advanced
Management) Course at Stanford Univ., USA
1989. 05 Graduated from San
Francisco State Univ. with Bachelor in Business Administration
1993. 03 Honorary Master’s
Degree from the Russian Institute of World Economy and International Relations
Professional
Experience
1964. 03 ~ 1968. 03 Hansung
Industrial Co., Ltd.
1968. 04 Daewoo
Industrial Co., Ltd.
1980. 03 ~ 1985. 02 President of
Daewoo Heavy Industries
1985. 03 ~ 1987. 10 President of
Daewoo Shipbuilding & Heavy Machinery Ltd.
1990. 01 ~ 1993. 01 President of
Daewoo Corporation
1993. 02 ~ 1994. 09 Vice
Chairman & CEO of Daewoo Industries Ltd.
1994. 10 Daewoo
Shipbuilding & Heavy Machinery Ltd. merged with Daewoo Heavy Industries
Ltd.
1995. 02 ~ 1998. 01 Chairman
& CEO of Daewoo Heavy Industries Ltd.
1995. 12 ~ 1997. 12 Chairman
& CEO of Daewoo Group
1998. 01 ~ 1998. 04 President
& CEO of Daewoo USA
1998. 04. 30 13th CEO of
DOOSAN Heavy Industries & Construction
2001. 03. 28 President
& CEO of Doosan Heavy Industries & Construction
2002. 03 .22
Vice-Chairman of Doosan Heavy Industries & Const.
1991. 02 ~ Current Honorary
Consulate of Uganda
1992. 06 ~ Current Arbitrator
of Korean Commercial Arbitration Board
1995 .03 ~ Current Chairman of
Korea Yachting Association
1996. 09 ~ 1999. 01 Chief
Director of Korea Institute of Machinery & Materials
1998. 05 ~ Current President of
Korea Association of Machinery Industry
2000. 03 ~ 2002. 03 Director of
The National Academy of Engineering
2001. 03 ~ Current President of
Korea Association of Plant Export
Awards
1964. 03 ~ 1968. 03 Hansung
Industrial Co., Ltd.
1968. 04 Daewoo
Industrial Co., Ltd.
1980. 03 ~ 1985. 02 President of
Daewoo Heavy Industries
1985. 03 ~ 1987. 10 President of
Daewoo Shipbuilding & Heavy Machinery Ltd.
1990. 01 ~ 1993. 01 President of
Daewoo Corporation
1993. 02 ~ 1994. 09 Vice
Chairman & CEO of Daewoo Industries Ltd.
1994. 10 Daewoo
Shipbuilding & Heavy Machinery Ltd. merged with Daewoo Heavy Industries
Ltd.
1995. 02 ~ 1998. 01 Chairman
& CEO of Daewoo Heavy Industries Ltd.
1995. 12 ~ 1997. 12 Chairman
& CEO of Daewoo Group
Lee Nam-Doo/President & CEO
Education
1968.02 Graduated from Pusan
Commercial High School
1974.02 Graduated from College
of Business and Economics, Hankuk University of Foreign Studies
2006.02 Dept. of Business
Administration, Changwon National University
Professional
Experience
1976.09 Joined Doosan Heavy
Industries & Construction
1996.03 Accounting
Manager/Director, Doosan Heavy Industries & Construction
1997.01 Planning/Accounting
Manager, Doosan Heavy Industries & Construction
1998.06 Planning Director,
Doosan Heavy Industries & Construction
1998.10 Director of Business
Affairs, Doosan Heavy Industries & Construction
2000.04 Manager Director &
General Manager of Business Management, Doosan Heavy Industries &
Construction
2001.07 Vice-President of
Doosan Engine
2003.08 President of Doosan
Engine
2006.03 President & CEO of
Doosan Heavy Industries & Construction
Awards
1999.12 Steel Tower Industrial
Award, National Quality Award
2003.11 7th Korea e-Business
Award
2004.12 2004 Digital Knowledge
Management Award
2005.03 Samsung Q Mark
2005.03 Minister of Finance
and Economy Award
2005.07 Beautiful Customs
Duties Administrative Partner
2005.10 Meritorious Service
Medal
2005.11 US$500 Million Export
Tower
2005.12 Gold Prize, Quality
Team, National Quality Award
2006.11 Korea Quality
Management Award, Korean Society for Quality Management
Financials
Unit: KRW
|
Year |
Sales |
Assets |
Net income |
|
3,508,665,339,829 |
5,162,276,633,395 |
74,164,962,570 |
|
|
2005 |
3,303,497,279,654 |
4,902,723,487,498 |
161,083,519,757 |
|
2004 |
2,455,505,415,000 |
3,649,300,078,000 |
164,226,996,000 |
Financial Description
Unit: KRW
|
Authorized
Capital |
2,000,000,000,000 |
|
Paid-Up
Capital |
523,631,500,000 |
|
Total Issues Shares |
104,726,300 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
01/01/2007~09/30/2007 |
As of 12/31/2006 |
As of 12/31/2005 |
|
Total Assets |
5,650,617,069,554 |
5,162,276,633,395 |
4,902,723,487,498 |
|
Current Assets |
1,964,824,253,788 |
1,835,924,980,015 |
1,740,167,976,281 |
|
-Quick Assets |
1,770,290,620,416 |
1,685,327,619,832 |
1,602,818,037,217 |
|
-Inventories |
194,533,633,372 |
150,597,360,183 |
137,349,939,064 |
|
Fixed Assets |
3,685,792,815,766 |
3,326,351,653,380 |
3,162,555,511,217 |
|
-Investment |
2,473,678,285,058 |
2,172,743,147,999 |
2,030,968,602,163 |
|
-Tangibles |
963,277,993,263 |
964,798,107,069 |
952,158,419,292 |
|
-Intangibles |
174,126,176,187 |
131,620,026,486 |
114,798,182,439 |
|
-Others |
74,710,361,258 |
57,190,371,826 |
64,630,307,323 |
|
Total Liabilities |
3,405,564,009,309 |
3,160,315,396,865 |
2,923,437,455,359 |
|
Current Liabilities |
2,251,563,227,821 |
2,234,204,521,557 |
1,482,015,343,718 |
|
Fixed Liabilities |
1,154,000,781,488 |
926,110,875,308 |
1,441,422,111,641 |
|
Capital Stock |
523,631,500,000 |
521,996,000,000 |
521,731,000,000 |
|
Capital Surplus |
608,882,681,637 |
606,896,770,296 |
606,400,269,891 |
|
Profit Surplus |
1,159,169,285,974 |
1,000,729,045,241 |
947,988,574,171 |
|
Capital Adjustment |
-46,630,407,366 |
-127,660,579,007 |
-96,833,811,923 |
|
Total Equity |
2,245,053,060,245 |
2,001,961,236,530 |
1,979,286,032,139 |
|
Liab. & Shareholder’s Equity |
5,650,617,069,554 |
5,162,276,633,395 |
4,902,723,487,498 |
|
Current
Liabilities |
2,251,563,227,821 |
2,234,204,521,557 |
1,482,015,343,718 |
|
Trade Payables |
255,519,555,598 |
480,012,053,612 |
379,259,515,569 |
|
Short-Term Borrowings |
566,323,484,804 |
536,220,159,512 |
376,996,644,477 |
|
Account Payables |
99,332,599,840 |
167,912,377,673 |
149,481,051,615 |
|
Current Portion of Long-Term
Accrued Interests |
- |
41,492,514,983 |
- |
|
Advance Receipts |
764,833,630,436 |
341,976,901,864 |
348,963,162,717 |
|
Withholdings |
8,290,436,229 |
29,095,888,509 |
25,945,420,393 |
|
Accrued Expenses |
57,133,314,692 |
56,397,131,645 |
46,274,823,588 |
|
Accrued Income Tax |
19,213,807,629 |
1,032,116,393 |
44,080,587,046 |
|
Current Portion of Long-Term
Debts |
252,743,520,000 |
453,597,515,539 |
55,398,230,000 |
|
Current Portion of Long-Term
Debts-Foreign Currency |
197,352,895,322 |
100,000,000,000 |
33,987,017,713 |
|
Derivatives |
30,819,983,271 |
22,375,911,346 |
21,628,890,600 |
|
Fixed
Liabilities |
1,154,000,781,488 |
926,110,875,308 |
1,441,422,111,641 |
|
Debentures |
600,000,000,000 |
600,000,000,000 |
|
|
Long-Term Borrowings |
202,405,550,000 |
4,238,950,000 |
1,053,985,706,278 |
|
Long-Term Debts-Foreign
Currency |
- |
100,000,000,000 |
123,413,912,313 |
|
Long-Term Account Payables |
20,925,438,410 |
2,696,490,720 |
8,815,227,300 |
|
Provision for Severance &
Retirement |
120,840,277,592 |
101,554,927,108 |
111,115,765,787 |
|
Provision for Construction
Loss |
11,910,309,033 |
19,337,922,240 |
18,571,863,799 |
|
Provision for Repairing |
32,971,300,868 |
41,051,527,545 |
56,713,581,052 |
|
Provision for Delays |
4,405,453,296 |
2,280,133,155 |
2,465,988,471 |
|
Gurantee Deposit Withhold |
57,178,522,910 |
46,689,634,461 |
47,011,738,878 |
|
Deferred Income Tax Credit |
100,684,739,379 |
5,874,100,079 |
407,900,767 |
|
Other Non-Current Liabilities |
2,679,190,000 |
2,387,190,000 |
18,920,426,996 |
|
Income Statement |
|||
|
Unit : Korean Won |
01/01/2007~09/30/2007 |
As of 12/31/2006 |
As of 12/31/2005 |
|
Sales |
2,638,621,180,582 |
3,508,665,339,829 |
3,303,497,279,654 |
|
Cost of Sold Goods |
2,278,124,401,072 |
3,035,586,965,425 |
2,861,636,862,391 |
|
Gross Profit |
360,496,779,510 |
473,078,374,404 |
441,860,417,263 |
|
Selling & Admin. Expenses |
195,682,096,846 |
264,714,603,810 |
220,655,250,916 |
|
Operating Income |
164,814,682,664 |
208,363,770,594 |
221,205,166,347 |
|
Non-Operating Income |
297,937,361,092 |
186,637,796,243 |
163,450,174,871 |
|
Non-Operating expenses |
189,897,420,928 |
283,683,863,791 |
182,086,287,202 |
|
Ordinary Income |
272,854,622,828 |
111,317,703,046 |
202,569,054,016 |
|
Special Income |
- |
- |
- |
|
Income Before Taxes |
272,854,622,828 |
111,317,703,046 |
202,569,054,016 |
|
Income Taxes Expenses |
84,401,543,995 |
37,152,740,476 |
41,485,534,259 |
|
Net Income |
188,453,078,833 |
74,164,962,570 |
161,083,519,757 |
|
Cash Flows |
|||
|
Unit : Korean Won |
01/01/2007~09/30/2007 |
As of 12/31/2006 |
As of 12/31/2005 |
|
Cash Flows from Operating |
269,565,236,564 |
(-)147,204,734,050 |
71,088,856,483 |
|
-Net Income |
188,453,078,833 |
74,164,962,570 |
161,083,519,757 |
|
-Exp. without Cash Outflow |
177,610,874,470 |
229,962,595,059 |
177,629,753,305 |
|
-Revenue without Cash Inflows |
(-)254,737,808,270 |
(-)139,163,443,366 |
(-)100,098,480,503 |
|
-Changes in Asset/ & Liability |
158,239,091,531 |
(-)312,168,848,313 |
(-)167,525,936,076 |
|
Cash Flows from Investing |
(-)206,604,682,736 |
(-)181,056,518,833 |
(-)1,572,709,452,429 |
|
-Cash Inflow from Investing |
17,327,483,138 |
208,075,403,951 |
57,354,795,126 |
|
-Cash Outflows for Investing |
(-)223,932,165,874 |
(-)389,131,922,784 |
(-)1,630,064,247,555 |
|
Cash Flows from Financing |
(-)7,792,516,758 |
148,935,248,327 |
939,518,955,669 |
|
-Cash Inflows from Financing |
224,907,716,881 |
1,212,963,099,853 |
1,642,927,425,732 |
|
-Cash Outflows from Financing |
(-)232,700,233,639 |
(-)1,064,027,851,526 |
(-)703,408,470,063 |
|
Increase/Decrease in Cash |
55,168,037,070 |
(-)179,326,004,556 |
(-)562,101,640,277 |
|
Cash at the Beginning of Year |
71,736,719,762 |
251,062,724,318 |
813,164,364,595 |
|
Cash at the End of Year |
126,904,756,832 |
71,736,719,762 |
251,062,724,318 |
Products, Technologies, Services
Description
|
Main
Products & Services |
Nuclear Power Plant Desalination Plant Construction Power Generation Casting & Forging |
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Detailed
Products Spec. |
Nuclear Power Plants - Reactor Vessel - Reactor internals - Steam Generator - BOP - Peripheral Systems Thermal Power Plants - Boiler - HRSG - Environmental Facility Producer - Material handling Equipment Turbines & Generators - Steam Turbine - Generator (STG/GTG) - Gas Turbine Desalination Plants - MSF - MED - RO - Hybrid Casting & Forgings - Power Facilities - Marine Engine Parts - Steel Mill - Plastic Mold & Tool Steel Construction Division - Civil - Nuclear Power Plant - Thermal Power Plant - Transmission Line Annual Production Capacity
|
Organization Structure
|
Suppliers |
DOOSAN INDUSTRIAL DEVELOPMENT CO., LTD. DOOSAN CORPORATION DOOSAN ENGINE CO., LTD. DOOSAN MECATEC CO., LTD. WONIK QUARTZ CO., LTD. ADDRESS: 16F KUKJE ELECTRONICS CENTER
1445-3 SEOCHO-DONG SEOCHO-GU SEOUL 137-728 KOREA TEL: 82-2-586-4601 FAX: 82-2-586-4614 INDUSTRY: MANUFACTURE OF LABORATORY AND
OTHER INDUSTRIAL GLASSWARE SEOHO ELECTRIC CO., LTD. ADDRESS: 194-53, ANYANG 7-DONG, MANAN-GU,
ANYANG, GYEONGGI 430-815 KOREA TEL: 82-31-468-6611 FAX: 82-31-468-3311 INDUSTRY: MANUFACTURE OF BOARDS FOR
ELECTRIC CONTROL OR DISTRIBUTION UNISON CO., LTD. ADDRESS: 803, JANGSAN-RI, SUSIN-MYEON,
CHEONAN, CHUNGNAM 330-882 KOREA TEL: 82-41-620-3333 FAX: 82-41-551-5611 INDUSTRY: MANUFACTURE OF ALL OTHER
FABRICATED METAL PRODUCTS N.E.C. YANG BO CO., LTD. ADDRESS: 1506-1, SONGJEONG-DONG,
GANGSEO-GU, BUSAN 618-270 KOREA TEL: 82-51-831-8889 FAX: 82-51-831-7744 INDUSTRY: MANUFACTURE OF ROLLED, DRAWN AND
FOLDED PRODUCTS OF COPPER BOSUNG POWERTEC CO., LTD. ADDRESS: 731-2, WONSI-DONG, DANWON-GU,
ANSAN, GYEONGGI 425-851 KOREA TEL: 82-31-491-0311 FAX: 82-31-491-5317 INDUSTRY: MANUFACTURE OF OTHER ELECTRIC
MOTORS, GENERATORS AND TRANSFORMERS SEOHO ELECTRIC CO., LTD. ADDRESS: 194-53, ANYANG 7-DONG, MANAN-GU,
ANYANG, GYEONGGI 430-815 KOREA TEL: 82-31-468-6611 FAX:
82-31-468-3311 INDUSTRY: MANUFACTURE OF BOARDS FOR
ELECTRIC CONTROL OR DISTRIBUTION |
|
Customers |
KEDO OMAN SOHAR NEW DAEGU BUSAN EXPRESSWAY CO., LTD. DOOSAN CORPORATION DOOSAN ENGINE CO., LTD. DOOSAN MECATEC CO., LTD. KOREA ELECTRIC POWER CORPORATION ADDRESS: 167, SAMSEONG 1-DONG, GANGNAM-GU,
SEOUL 135-882 KOREA TEL: 82-2-3456-3114 FAX: 82-2-3456-4049 INDUSTRY: ELECTRIC POWER GENERATION KOREA SOUTH-EAST POWER CO., LTD. ADDRESS: 167, SAMSEONG 1-DONG, GANGNAM-GU,
SEOUL 135-882 KOREA TEL: 82-2-3456-7111 FAX: 82-2-3456-7149 INDUSTRY: ELECTRIC POWER GENERATION KOREA MIDLAND POWER CO., LTD. ADDRESS: 17TH FL., 167, SAMSEONG
1-DONG, GANGNAM-GU, SEOUL 135-882 KOREA TEL: 82-2-3456-7411 FAX: 82-2-3456-7331 INDUSTRY: ELECTRIC POWER GENERATION DAEWOO SHIPBUILDING & MARINE
ENGINEERING CO., LTD. ADDRESS: 140, DA-DONG, JUNG-GU, SEOUL
100-180 KOREA TEL: 82-2-2129-0114 FAX: 82-2-756-4390 INDUSTRY: BUILDING OF STEEL SHIPS HANJIN HEAVY INDUSTRIES & CONSTRUCTION
CO., LTD. ADDRESS: 29, BONGNAEDONG 5-GA, YEONGDO-GU,
BUSAN 606-796 KOREA TEL: 82-51-410-3114 FAX: 82-51-410-3337 INDUSTRY: BUILDING OF NON-FERROUS METAL
SHIPS AND OTHER SAILING SHIPS |
|
Competitors |
The subject’s domestic market share in
Nuclear Power Plants, Thermal Power Plants, Turbines & Generators accounts for
100%. |
Related Parties (Subsidiaries,
Joint-
Venture & Affiliates)
|
Affiliates |
DOOSAN CO.,LTD(110111-0013774) SRS KOREA CO., LTD.(110111-3139733) DOOSAN INFRACORE CO., LTD. (120111-0018128) DOOSAN ENGINE CO., LTD(194211-0038423) DOOSAN MECATEC., LTD.(110111-0126022) DOOSAN CONSTRUCTION & ENGINEERING CO.,LTD.(110111-0194277) SAEJAE DEVELOPMENT CO., LTD(110111-1074048) NEO TRANS CO., LTD.(131111-0141801) SAMHWA CROWN & CLOSURE
CO.,LTD(134111-0003462) REXCON CO.,LTD.(110111-3586273) ORICOM INC(110111-0176986) DOOSANBEARS INC(110111-0346919) NEOPLUX CO., LTD.(110111-1927841) N.SHAPER(110111-1943574) DOOSAN CAPITAL CO.,LTD.(110111-1220336) GLOBAL LOGISTICS CO., LTD.(110111-1235749) DOOSAN CUVEX CO.,LTD(140111-0032570) DOOSAN MOTORS CORP.(110111-3008293) DONG HYUN ENGINEERING CO.,LTD.(110111-0508329) |
|
Overseas Branch |
BEIJING ADDRESS: RM1904 LANDMARK BLDG.,8 NORTH
DONGSANHUAN ROAD,CHAOYANG DISTRICT,BEIJING 100004,CHINA TEL: 86-10-6590-0924/0109 FAX:
86-10-6590-0991 TAIWAN ADDRESS: 704,NO.51,KEELUNG ROAD SECTION 2,
TAIPEI, TAIWAN, R.O.C TEL: 886-2-2739-2255(ARS) FAX:
886-2-2739-2266 K.L. ADDRESS: LETTER BOX NO.86,22ND FLOOR,UBN
TOWER,10, JALAN P.RAMLEE,50250 KUALA LUMPUR.MALAYSIA. TEL: 60-3-2026-8890, 60-10-513-3708 FAX:
60-3-2026-8891 FRANKFURT ADDRESS: ARABELLA CENTER 4TH FLOOR, LYONER STRASSE,
44-48, 60528 FRANKFURT AM MAIN, GERMANY TEL: 49-69-69-5004-0/12/13,
H.P)49-172-212-3528 FAX: 49-69-69-5004-10 ABU DHABI ADDRESS: AL GHAITH TOWER 5TH FLOOR, ROOM
508, HAMDAN STREET, P.O. BOX 27767, ABU DHABI, U.A.E. TEL: 971-2-627-6273 FAX: 971-2-627-6274 RIYADH ADDRESS: P.O.BOX 9656, RIYADH 11423,SAUDI
ARABIA TEL: 966-1-419-1920/0397, 966-1-215-0283
FAX: 966-1-419-1995 |
|
Subsidiary |
DOOSAN MECATEC CO., LTD. ADDRESS: 64, SINCHON-DONG, CHANGWON,
GYEONGNAM 641-370 KOREA TEL: 82-55-279-5555 FAX: 82-55-279-5777 INDUSTRY: MANUFACTURE OF METAL CUTTING
MACHINES *DHI HAS 100% SHARES OF DOOSAN MECATEC CO.,
LTD. DOOSAN ENGINE CO., LTD. ADDRESS: 69-3, SINCHON-DONG, CHANGWON,
GYEONGNAM, 641-370 KOREA TEL: 82-55-260-6000 FAX: 82-55-260-6761 INDUSTRY: MANUFACTURE OF INTERNAL
COMBUSTION PISTON ENGINES *DHI HAS 51.0% SHARES OF DOOSAN ENGINE CO.,
LTD. N SHAPER INC. ADDRESS: 15TH FL., DOOSAN TOWER BLDG.,
18-12, EULJIRO 6-GA, JUNG-GU, SEOUL 100-730 KOREA TEL: 82-2-3398-3706 FAX: 82-2-3398-1071 INDUSTRY: MANAGEMENT CONSULTANCY ACTIVITIES *DHI HAS 80.52% SHARES OF N SHAPER INC. |
|
Overseas Subsidiary |
CHICO ADDRESS: ORUWALA ATHURUGIRIYA SRI LANKA TEL: 94-114-440031~2 FAX: 94-114-440030 PT DOOSAN ADDRESS: JL RAYA SOEKARNO HATTA KM 11,5 SERENGSEM
PANJANG, BANDAR, LAMPUNG, SUMATERA, INDONESIA TEL: 62-721-32288 JAKARTA) 62-21-837-93066 FAX:
62-721-33216 JAKARTA) 62-21-837-93-061 HPL ADDRESS: P.O.BOX 2803 BOROKO, NCD PAPUA NEW
GUINEA RANDY 675-321-1532 TEL: 675-320-0529 FAX: 675-321-2984 HANVICO ADDRESS: TON DUC THANG STREET HAIPHONG, VIETNAM TEL: 84-31-712708~11 FAX: 84-31-712714,712715 PHS ADDRESS: BATU14,33700 PADANG RENGAS IN THE STATE
OF PERAK,MALAYSIA TEL: 60-5-759-6000, 60-5-758-4409 FAX:
60-5-758-4313 DOOSAN JAPAN CO ADDRESS: ROOM2410,MITA KOKUSAI BLD.1-4-28, MITA
MINATO-KU, TOKYO,JAPAN 108-0073 TEL: 81-3-3452-5451~3 FAX: 81-3-3452-5624 DOOSAN AMERICA CO. ADDRESS: 140,SYLVAN AVENUE, SUITE 3B,ENGLEWOOD
CLIFFS, N.J 07632, U.S.A TEL: 1-201-944-4554 FAX: 1-201-944-5022/5053 HFC ADDRESS: 16650 WESTGROVE DRIVE #500, ADDISON,
TEXAS75001,USA TEL: 1-972-367-4657, 1-972-367-4626 FAX:
1-972-367-4689/4699 |
|
Cooperative Enterprise |
WESTINGHOUSE-USA ALSTOM POWER, INC-USA GE-USA ALSTOM HYDRO-FRANCE ALSTOM HYDRAULIQUE SA-FRANCE |
Sales by
Region (Activity &
Markets)
|
Sales/ Unit :Mil KRW |
2006 |
2005 |
2004 |
|
Export |
1,329,143 |
1,375,536 |
801,334 |
|
Domestic |
2,179,522 |
1,927,961 |
1,654,171 |
|
Total |
3,508,665 |
3,303,497 |
2,455,505 |
The Subject exports to China, Japan, India, Saudi Arabia, Qatar, USA, Taiwan and Middle East.
Court
Action
|
Case No. |
Court |
Plaintiff(s)/
Creditor(s)/ Applicant(s) |
Defendant(s)/
Debtor(s)/ Respondent(s) |
Cause |
Amount (KRW) |
Status |
|
|
|
Namdong Power Co., Ltd. |
The Subject Company |
Claim for damages from stopping operation |
88,800,000,000 |
Proceeding |
|
|
|
Others |
The Subject Company |
|
2,788,000,000 |
Proceeding |
News
Clipping
South Korea’s Overseas Construction Volume Soars to Billion
Maeil Business Newspaper & mk.co.kr:09/02/2007
South Korean construction companies have scored $20 billion in overseas
orders for the first time in history on August 29. They are now playing an
integral part in the construction industry worldwide from the Middle East, the
Mecca for Korea’s overseas construction companies, to Africa and Central Asia.
“Oil money”, which has sustained the regional economic power, is the
forte that drives Korean constructors to advance into those foreign countries.
As much as $14.5 billion, 69 percent of the $21 billion posted by
domestic construction companies engaged in overseas projects until August this
year, was earned in the Middle East. Central Asia including Kazakhstan and
Africa, both of which are new emerging markets for Korean construction
companies, are also showing rapid economic growth based on their abundant
resources such as oil and natural gas.
The other catalyst in the domestic construction companies’ rapid
advancement into the overseas markets is the companies’ unparalleled
competitiveness in plant construction which yields a higher profit margin than
other construction projects. During this year, Korean construction companies
have actually dominated the global plant construction market. They successively
inked large-scale plant construction projects worth over $1.5 billion per
project including GS Construction’s oil refinery plant construction in Egypt
($1.8 billion); Doosan Heavy Industries’ Jebel Ali water plant construction in
UAE ($1.7 billion); and Hyundai Heavy Industries’ Umm Shaif gas plant in UAE
($1.6 billion).
However, overshadowed by domestic constructors’ such brilliant business
achievements overseas, chronic troubles of the domestic construction industry
are repeated without any sign of improvement.
According to the Korean Embassy in UAE, the number of Korean companies
that advanced into Dubai has totaled over 100, 70 percent of which are
construction companies. It means that almost all domestic construction
companies are looking for a business opportunity in Dubai, while fewer than 20
companies among them are actually making business now.
In addition, unstable market conditions in foreign countries are deemed
to be another risk factor for domestic constructors engaged in overseas projects.
[Sun-young Park / KHS]
[ⓒ Maeil Business Newspaper &
mk.co.kr, All rights reserved]
Korea in push to build 12 new reactors in China
JoongangIlbo & Joins.com:07/27/2007
Korea will push to help local companies participate in the construction
of new commercial nuclear reactors in China, the government said yesterday.
The Ministry of Commerce, Industry and Energy said domestic companies,
including Doosan Heavy Industries Co., could supply components to the 12
reactors that will be built in China.
Contractors for the building of the reactors are to be picked by the end
of the year.
The planned reactors are to be the 1-million-kilowatt type, with Korean
companies capable of exporting related parts worth $3.6 billion to $4.8
billion.
“Vice Energy Minister Lee Jae-hoon, who will be in China on Thursday and
Friday, will aggressively pitch for a greater role by Korean companies in the
building of the proposed reactors,” said a ministry spokesman yesterday.
Lee plans to meet Wang Banghua, chairman of the State Nuclear Power
Technology Corporation that is responsible for the atomic reactor building
plan.
Korea, which started operating its first atomic reactor in 1977,
currently provides 40 percent of the country’s energy needs from 19 reactors.
It can also design and build indigenous reactors and is seeking foreign
buyers.
China, Indonesia, Vietnam and South Africa are among the countries to
which Seoul wants to sell its nuclear reactors.
Doosan signed a letter of intent in April with U.S.-based Westinghouse
Electric Co.
to supply parts for the construction of two reactors, four steam supply
systems and other supporting equipment for the building of nuclear power plants
in China.
The ministry said the vice minister will also be present for the signing
of a memorandum of understanding aimed at the takeover of a large coal mine
operation in Shanxi Province.
Seoul has been aggressively moving to buy and develop overseas oil, gas
fields and coal mines to reduce the country’s dependence on foreign energy
resources.
Korea buys 97 percent of its energy needs from abroad. Yonhap
- Copyrights :
JoongangIlbo & Joins.com, All rights reserved. –
Doosan Heavy Industries & Construction
Acquires Mitsui Babcock Energy
Maeil Business Newspaper: 2006-11-06
Bo-yung Kim / CJB
* Doosan Heavy Industries & Construction Acquires Mitsui Babcock
Energy. Doosan Heavy Industries & Construction Co. Ltd. has acquired the
total share volume of Mitsui Babcock Energy Ltd., the world's leading suppliers
of clean coal power plant technology, worth approximately 160 billion won,
according to a report on Monday.
From the acquisition, Doosan Heavy Industries & Construction has
procured technology to compete with B&W, Foster-Wheeler and Alstom, the
international firms from the U.S., Europe and China in the coal-fired steam
development business market.
The acquisition of Mitsui Babcock Energy is hoped to help the Korean conglomerate
to procure about one trillion won in business in next three years.
Until now, Doosan Heavy Industries & Construction had implemented
its boiler business with Alstom.
Mitsui Babcock Energy possesses the "world's best boiler combustion
technology," according to Doosan Heavy Industries & Construction.
There are about 30 branches of Mitsui Babcock Energy, worldwide, with
4,700 employees.
Doosan Heavy Industries & Construction
had been privatized at the end of 2000 and had a financial turnaround in 2004,
triggering it to expand global business via aggressive investment and the
procurement of sources of technology and international manufacturing branches.
Newspaper: Korea Times
Subject: Doosan Heavy to Bid for
Westinghouse
Date: 22-Aug-2005
South Korean power-generation equipment maker Doosan Heavy Industries
& Construction Co. said Monday it will bid for Westinghouse Electric Co., a
U.S.-based unit of British Nuclear Fuels Plc.
``Doosan Heavy has presented a letter of intent for the purchase of Westinghouse
before it will take part in preliminary bidding in the middle of next month,''
a company official said.
The preferred bidder is to be chosen by the end of this year, he said.
Doosan, U.S. General Electric Co., Mitsubishi Heavy Industries Ltd.,
Japan's largest heavy machinery manufacturer, and other prospective buyers are
to attend the auction, the official added.
As Doosan Heavy has kept up close cooperation with Westinghouse since
the 1970s, which led to the building of Korean-style nuclear power reactors,
there is a high possibility of Doosan buying the company, according to
analysts.
South Korea's first nuclear reactor, Gori No. 1, was built by
Westinghouse, which had an operating profit of $130 million on sales of $1.6
billion last year.
Westinghouse made equipment for the world's first nuclear power plant in
1957. Its technology is the basis for nearly half of the world's operating
commercial nuclear power plants, according to the company's Web site. In
addition to building new plants, the company supplies fuel for reactors.
``If Doosan succeeds in the takeover of Westinghouse, we can build
atomic generators with our own technology without paying royalties any more,'' a
Doosan official said on condition of anonymity. Doosan has built 20 domestic
nuclear reactors.
2nd Hearing Over Microsoft Due Tuesday
SEOUL (Yonhap) _ South Korea's antitrust regulatory body will hold a
second hearing Tuesday on allegations Microsoft Corp. has violated the nation's
fair trade laws and exploited its dominant market position to the detriment of
smaller competitors, an official said Monday.
``The general session will open at 10:00 a.m. tomorrow with our chief,
Kang Chul-kyu, chairing,'' said Park Sang-yong, a spokesman of the Fair Trade
Commission.
On July 13, the FTC held the first meeting of its nine-member
deliberation committee to make a verdict on Microsoft's antitrust complaints
here, but delayed its ruling, giving the U.S. software giant more time to
prepare its defense in the country's landmark case.
Last month's meeting came nearly four years after Daum Communications
Corp., South Korea's second most-visited Internet portal, filed a complaint
with the FTC, accusing Microsoft of bundling its instant messaging software
with a version of the dominant Windows operating system.
Microsoft, which has been called a "monopolistic predator" by
its opponents, also stands accused by another U.S. software company,
RealNetworks Inc., of incorporating its Media Player audiovisual software and
Media Server programs into the Windows operating system. RealNetworks lodged a
complaint with the FTC last November.
The FTC spokesman refused to say whether any settlement or breakthrough
was made with Microsoft since the delay at the first hearing.
``All I can tell you is that the second hearing will begin tomorrow as
scheduled, but a decision is highly unlikely to come that soon,'' Park said.
Newspaper: Korea Times
Subject: Aide to Former Doosan
Chairman to Be Summoned
Date: 27-Jul-2005
The Seoul Central District Prosecutors' Office will summon this week an
aide to former Doosan Group chairman Park Yong-oh for questioning on slush fund
allegations.
The prosecutors’ office Tuesday launched an investigation into possible
accounting fraud by top executives of Doosan Group, the nation’s 10th biggest
family-controlled conglomerate, divulged amid a fraternal power struggle
between Park Yong-oh and his brothers.
The prosecution imposed an overseas travel ban on five people suspected
of participating in the slush fund scandal _ a former chief executive of a
company closely connected to the Doosan Group and four Doosan officials.
However, the prosecution did not ban incoming Doosan Group chairman Park
Yong-sung and Doosan Corp. vice chairman Park Yong-maan from traveling
overseas.
On July 21, Park Yong-oh accused his younger brothers and nephews,
including Yong-sung and Yong-maan, of having secretly and systematically
embezzled corporate funds to amass 170 billion won in slush funds.
Park made these accusations public due to his brothers’ refusal to a
request to split Doosan Industrial Development from the conglomerate and hand
it over to him.
The prosecution plans to arraign Park Yong-oh’s aide, identified by the
last name Sohn, for questioning by Friday at the latest. The prosecution is
also expected to summon Park Yong-oh soon.
``We will complete examination of the written complaints filed by Park
Yong-oh as soon as possible and will summon Park’s aide sometime this week,’’
chief public prosecutor Son Ki-ho said.
``But we cannot comment on where the focus of the investigation will be
because we haven’t finished reviewing the complaint,’’ Son said.
The investigation into Doosan Group’s slush fund scandal is expected to
pick up speed next week when the prosecution completes its examination of the
credibility of accusations made by Park Yong-oh.
The probe, which prompted a freeze on business plans at Doosan, will
begin by checking the accusations made by former chairman Park Yong-oh, the
prosecution said.
A Doosan Group spokesman said he has not heard from the prosecution yet
regarding the questioning of Doosan executives.
In the complaint filed with the prosecution, Park Yong-oh alleged that
Park Yong-sung secretly hoarded up to 45 billion won in slush funds by
embezzling profits from a draft beer bar chain.
He added that Yong-sung also pocketed 20 billion won in slush funds
through a building management firm and committed corporate accounting fraud.
The former Doosan chairman also alleged that Doosan Group vice chairman
Park Yong-maan accumulated slush funds amounting to 20 billion won by
embezzling profits from Doosan Industrial Development’s construction orders
over the past five years.
He also asserted that Yong-sung’s son Jin-won, who is serving as an
executive director at Doosan Infracore, diverted 80 billion won in corporate
funds to overseas via a biotech venture firm Nutra Park located in Wisconsin.
The 109-year-old Doosan Group dismissed Park Yong-oh’s claims as ``total
nonsense.’’ Park serves as the chairman of the Asia-Pacific Economic
Cooperation (APEC) CEO Summit 2005.
Due to the recent slush fund scandal, Doosan Group postponed the planned
proclamation of its new business philosophy for the next century, dubbed the
``Doosan Way,’’ which originally slated for Aug. 1, to next year.
The family dispute has also hurt the conglomerate's management-labor
relations, which have been cooperative since Doosan Heavy Industries and
Construction reached its first peaceful wage negotiations in the union's
17-year history last November.
Newspaper: Korea Times
Subject: Will Doosan Succeed in
Handing Down Co-Management Traditio
Date: 25-Jul-2005
With Doosan Group still mired in a family feud, the industry is focused
on the nation’s 10th biggest conglomerate’s ability in handing down its
co-management tradition to a fourth-generation of executives.
The third-generation of the Doosan Group founder is represented by the
honorary chairman Park Yong-gon, 73, and that generation was once touted as a
model of family ownership, where brothers harmoniously co-managed the group.
Until last Wednesday, this third-generation of Doosan executives
appeared as if they abided by those ``co-ownership’’ and ``co-management’’
principles established by the late group founder Park Seung-jik and his
successor and deceased co-founder Park Doo-byung, the second-generation owner.
However, last Thursday, former Doosan Group chairman Park Yong-oh, 68,
who was disgracefully dethroned by his brothers after lodging a complaint with
the prosecution regarding the appointment of Park Yong-sung as Doosan Group’s
new boss, while alleging that his brothers were hoarding 170 billion won in slush
funds.
Doosan’s process of passing down the family business to a
fourth-generation of executives has already begun, but it remains to be seen
whether the third-generation of owners can succeed in upholding the Doosan
Group intact as a single entity.
When the fourth-generation of executives will raise their collective
voice for their share of the company to which they believe they have rights,
the disintegration of the Doosan Group could pick up speed. A power struggle
will likely be more intense among the 15 grandchildren of Doo-byung than that
among his six sons and one daughter.
New Doosan Group chairman Park Yong-sung, 64, dismisses rumors of a
breakup of the company.
The squabble between Park Yong-oh and his brothers began late last year
with the elder Park’s fear that his sons were losing their grip on the
conglomerate, whereas his second-youngest brother Yong-maan and children of
Yong-gon and Yong-sung are increasing their influence inside the group.
Fourth-generation of Parks are serving at key posts in Doosan companies.
Park Yong-gon’s eldest son Jeong-won, 43, has been promoted as the vice
chairman of DIDECO last week. The honorary chairman’s second son Ji-won, 40, is
serving as an executive vice president of Doosan Heavy Industries &
Construction (DHIC). His daughter Hye-won, 42, is an executive director of
Doosan Corp.’s magazine business unit.
Park Tae-won, 36, son of Park Yong-hyun, 61, Seoul National University medical
school professor and fourth son of Doo-byung, is serving as an executive
director of Neoplux, venture capital subsidiary of the Doosan Group.
Yong-hyun’s two other sons, Hyeong-won, 35, and In-won, 32, are serving as
managers at Doosan Corp.
Park Yong-sung’s eldest son Jin-won, 37, is serving as an executive
director at Doosan Infracore, and second son Seok-won, 34, is a manager of
DHIC.
After Thursday’s family fight, the Doosan Group axed Park Yong-oh’s
second son Joong-won, 37, who has been serving as an executive director of
DIDECO.
Park Yong-oh’s eldest son Kyoung-won, 41, resigned from the executive’s
position at Doosan Industrial Development (DIDECO) and disposed of all his
shareholding to take over Chun Shin Electronics, a company that specialize in
projector and CCTV manufacturing, back in 2000.
However, Chun Shin Electronics continued to suffer financial
difficulties and Park Yong-oh gradually sold off his stakes in Doosan companies
to support Kyoung-won.
As a result, Park Yong-oh’s stake in Doosan Corp., the de facto holding
company of the chaebol, plunged to 1.8 percent last year from 3.95 percent in
1998, whereas Park Yong-sung’s share stood at 2.88 percent, down from 4.25
percent, and Doosan Corp. vice chairman Park Yong-maan’s share rose to 3.72
percent from 0.46 percent.
Park Yong-oh holds a measly 0.7 percent stake in DIDECO. DIDECO is the
ninth biggest construction and engineering firm in Korea.
Park Yong-oh and his son Kyoung-won surreptitiously attempted to take
over DIDECO, which held 22.9 percent stake in Doosan Corp., late last year but
Yong-gon and Yong-sung spotted his hostile merger and acquisition attempt early
this year.
To debilitate Park Yong-oh’s takeover attempt, the Doosan Group ordered
DIDECO to sell 2.8 million shares in Doosan Corp., out of total 5.5 million
shares it owned, to Doosan Engine, Doosan Infracore and the fourth-generation
executives through off-board transactions on July 15.
DIDECO’s stake in Doosan Corp. dropped to 12.8 percent. As DIDECO held a
lion’s share in Doosan Corp., acquiring DIDECO means taking over the control of
the entire Doosan Group.
Eleven children of the third-generation of executives, save for Park
Yong-oh, bought a combined 800,000 common stock shares in Doosan Corp. In the
transaction, Park Jeong-won purchased 134,720 shares, Ji-won 89,840 shares and
Hye-won 40,880 shares.
After failure of his takeover attempt, Park Yong-oh asked his brothers
to separate DIDECO and hand it over to him, citing that he and his children deserve
such a fortune given his contribution to fostering Doosan Group into Korea’s
10th largest family-run conglomerate, but the offer was rejected.
The split up of the Doosan Group is unlikely at least for now as the
Park family drove out Yong-oh and his children from the conglomerate and
isolated them from other family members to prevent repetition of such attempt.
However, many believe it will not be long before another ``Yong-oh’’
emerges within the family.
The latest ``rebellion’’ by Park Yong-oh shows the limit of the unique
corporate governance structure of Korean family-run conglomerates, where
managers act with impunity despite their actual ownership of less than 10
percent of the firms.
The Park family holds a combined 5.2 percent stake in the Doosan Group.
The average shareholding of Korea’s top 38 family-controlled conglomerates
stands at 4.94 percent.
Regardless of whether the Park family succeeds in maintaining
co-ownership and co-management, experts say they should abandon the belief they
can do what they like with Doosan Group, because they simply have managerial
control of the firm’s 19 subsidiaries.
Economists point out that only when the Park family realizes that
shareholders possess Doosan companies, not the family, per se, the sooner they
will be able to harmoniously manage the conglomerate and truly become a
multinational business group.
Newspaper: Korea Times
Subject: Park Ousts Elder
Brother in Doosan Ownership Feud
Date: 22-Jul-2005
The Doosan Group has decided to drive out chairman Park Yong-oh.
Doosan Industrial Development (DIDECO) and Doosan Corp. Friday convened
emergency board of directors meetings, respectively, and endorsed motions to
push Park from the chief executives’ posts.
DIDECO board reached a consensus to vote on the motion at an
extraordinary shareholders’ meeting slated for Sept. 7. The board also agreed
to appoint Park Jeong-won, 43, son of Park Yong-gon, honorary chairman of the
Doosan Group, as vice chairman of Doosan Industrial Development.
Park, 68, the second eldest of the third-generation executives, was
originally assigned to be the honorary chairman of the Doosan Group. He served
as the CEO of both DIDECO and Doosan Corp., the de facto holding firm of the
109-year old conglomerate.
``I will cooperate with prosecution’s investigation in an open and
aboveboard manner, and the National Tax Service and the Financial Supervisory
Service already have initiated probes into some speculations raised by ex-chairman,’’
said Park Yong-sung at a press meeting on Friday.
Park added that the Doosan Group axed Yong-oh’s second son Park
Joong-won, who has been serving as an executive director of DIDECO.
The decision to dethrone Park, follows the filing of a complaint by the
outgoing chairman with the prosecution against his younger brother Park
Yong-sung’s takeover of the helm of the Doosan Group, a move that sparked an
ugly power struggle among Park brothers.
The Doosan Group last Monday announced that Park Yong-oh willingly
decided to transfer the reins to Park Yong-sung, 64, chairman of Doosan Heavy
Industries & Construction, and the conglomerate was touted as a model case
of family management, where brothers harmoniously manage the group.
Park Yong-sung is set to assume the chairmanship from Aug. 1, with the
process of succession to be completed by year’s end.
Industry observers and local media lauded the strong bond of affection
among Park brothers.
The prosecution Friday said it would launch an extensive probe into the
complaint filed by Park Yong-oh, who alleged that he was browbeaten to give up
his chairmanship by his brothers, including the new chairman-elect Park
Yong-sung.
On Thursday, Park Yong-oh asserted that other Park family executives
sought to expel him from the Doosan Group management under a fear that he would
divulge their financial irregularities of having secretly and systematically
amassing a total of 170 billion won in slush funds.
Doosan Group honorary chairman and the eldest of the living
third-generation executives Park Yong-gon, 73, on the same day convened an
emergency meeting of Doosan Group subsidiary CEOs at the conglomerate’s
headquarters in downtown Seoul and decided to expel Yong-oh from the business group.
The honorary chairman said Yong-oh, disgruntled at his brothers who
declined his offer to break up the conglomerate, framed up his siblings by
forging a fictitious story for his own greed.
``Ex-chairman Park’s behavior is a treacherous act against both the
family and the entire Doosan Group. He is no longer a member of either Doosan
Group or our family and he will be expelled,’’ Park Yong-gon said Thursday.
``We will take legal measures against ex-chairman Park’s dissemination
of false rumors,’’ Park added.
The Doosan Group said that Park Yong-oh defied Yong-gon’s offer to step
down from the chairman’s post as he already serves in the position for 10 years
and made counteroffer to give DIDECO to him and his children.
However, the Park family turned down Park Yong-oh’s request as he
retains a measly 0.7 percent stake in DIDECO and as such demand runs counter to
the ``joint ownership, joint management’’ principle set up by late Doosan Group
founder Park Seung-jik and his successor and deceased co-founder Park
Doo-byung.
In fact, as Doosan Corp., DIDECO and Doosan Heavy Industries and
Construction are tied to a complicated Web of cross shareholding and
investment, separating DIDECO into an individual entity would shake up the
entire corporate governance structure of the Doosan Group.
The succession struggle had been brewing since late last year.
Park Yong-oh’s eldest son Kyoung-won, 41, resigned from the executive’s
position at DIDECO and disposed of all his shareholding to take over Chun Shin Electronics,
a company that specialize in projector and CCTV manufacturing, back in 2000.
However, he continued to suffer financial difficulties and Park Yong-oh
gradually sold off his stakes in Doosan companies to support Kyoung-won, but
they failed to reap enough earnings compared to the sum they injected.
Kyoung-won and his aides clandestinely attempted to take over DIDECO,
and Park Yong-gon and Yong-sung spotted such merger and acquisition attempt early
this year. Park Yong-oh and his children reportedly feared losing their
foothold in Doosan Group whereas children of Yong-gon and Yong-sung have
already a solid grip in Doosan companies.
Park Yong-oh seeks to reverse the chairmanship succession decision by
the Doosan Group but such an attempt appears rather reckless as he now has only
1.8 percent share in Doosan Corp. and 0.7 percent in DIDECO.
Slush Fund Probe
As the Supreme Public Prosecutor's Office decided to scrutinize the
slush fund scandal, the Doosan Group is expected to confront the biggest
management difficulty after the one in 1991 involving the dumping of massive
quantity of phenol, a toxic waste, in the Naktong River, by Doosan
Electro-Materials.
The family feud not only tarnished the corporate image of the Doosan
Group that seeks to grow into a top-tier multinational corporation but also
would deal a direct blow to the corporate management.
The succession row also tainted the image of Park Yong-sung, who
concurrently serves as the chairman of the International Chamber of Commerce
(ICC) and the Korea Chamber of Commerce and Industry (KCCI). He is also a
member of the International Olympic Committee.
``The family fight is forecast to make quite a dent in Doosan’s image.
Doosan companies will focus on fulfilling greater social responsibilities and
improving revenue and profits to avoid the power struggle from aggravating
corporate management,’’ said a Doosan Group official on condition of anonymity.
In the complaint filed with the prosecution, Park Yong-oh alleged that
the Park Yong-sung secretly hoarded up to 45 billion won in slush funds by
embezzling profits from a draft beer bar chain.
He added that Yong-sung also pocketed 20 billion won slush funds through
a building management firm and committed corporate accounting fraud.
The former Doosan chairman also alleged that Doosan Group vice chairman
Park Yong-maan also accumulated slush funds amounting to 20 billion won by
embezzling profits from DIDECO’s construction orders over the past five years.
He also asserted that Yong-sung’s son Jin-won, who is serving as an
executive director at Doosan Infracore, also diverted 80 billion won of
corporate funds to overseas for private use.
Doosan Group dismissed Park Yong-oh’s claims as ``total nonsense.’’ Park
serves as the chairman of the Asia-Pacific Economic Cooperation (APEC) CEO
Summit 2005.
The Doosan Group, which started off as a tiny store in 1896, currently
has 19 subsidiaries under its wing and its combined assets are estimated at 12
trillion won. Its assets increased when it acquired Daewoo Heavy Industries
& Machinery, which was renamed Doosan Infracore, last April.
Newspaper: Korea Times
Subject: Doosan Heavy to Export
Facilities to Libya
Date: 28-Jun-2005
Doosan Heavy Industries and Construction, the world’s No.1 desalination
plant manufacturer, has completed the construction of an evaporator for
desalination facilities in Libya that will supply fresh water to an industrial
and residential belt in the African country.
The company won the order for the fresh water plant last May from
Libya’s General Electricity Company.
Located on a coastal area some 100 kilometers east of Tripoli, Libya’s
capital, the plant is expected to play a key role in resolving the water
shortage faced by the area, the company said.
It is the first time for a South Korean company to export desalination
facilities to an African country, the firm said.
The evaporator is a key element of the desalination plant and can
produce 2,500 tons of desalinized water at full daily capacity.
Doosan used a ``multieffect distillation (MED)’’ method in manufacturing
the facility, which produces fresh water by condensing vapor. The method, which
is used for small- and mid-sized evaporators, is one of the most popular ways
to produce water in Africa.
``We expect orders worth over $5 billion to be placed by African
countries for the MED facilities by 2010,’’ the company said in a release.
``The MED method costs less than other methods and is more efficient.’’
Doosan is one of the most active players in the African desalination
market. It set up a branch office in Tripoli last year to brace for the
emerging market.
In February, the firm won a $6.5 million order in Zawia, Libya, to build
a desalination plant that is capable of producing 550,000 gallons of water a
day. Doosan plans to complete construction of the Zawia plant by next April.
Doosan vice president Lee Yun-young said it has the most advanced
technologies in the field of desalination plant manufacturing.
It developed the world’s largest 3,650-ton, 104-meter-long evaporator
for a desalinization plant in Sabiya, Kuwait, last month.
Newspaper: Korea Times
Subject: Doosan Heavy Develops
World's Largest Evaporator for Desal
Date: 10-May-2005
Doosan Heavy Industries and Construction has developed the world's
largest 3,650-ton evaporator for a desalinization plant it is building in
Sabiya, Kuwait.
The firm will export the evaporator, which is 104 meters long, 26.5
meters wide and 9.5 meters high, to Kuwait by June.
It will construct three more evaporators for the Sabiya plant, which is
due to be completed January 2007.
Doosan won the $370 million contract from Kuwait's Ministry of Energy in
May last year.
The firm's vice president Lee Yun-young said the plant, located about
100 kilometers north of Kuwait City, will produce 227,000 tons of fresh water a
day, which is enough for 600,000 people.
The world's No.1 desalinization plant manufacturer expects record orders
from Middle East countries this year.
It won a $6.5 million order to build a desalinization plant in Libya in
February and a $28 million contract to improve water facilities in Kuwait.
Last year, it secured orders worth $1.15 billion for large desalinization
equipment from the Middle East.
Doosan officials said many Middle Eastern countries, such as Qatar and
Oman, are focusing on building desalinization facilities with profits from a
surge in international oil prices.
``We expect the desalinization market in the Middle East to grow to 30
trillion won by 2010,'' a Doosan official said.
Newspaper: Korea Times
Subject: Doosan Wins $270
Million Order
Date: 06-Apr-2005
Doosan Heavy Industries and Construction has won a $270 million order
from Qatar to build the country’s largest desalinization plant, Doosan
officials said Wednesday.
The world’s No. 1 desalinization plant manufacturer will construct the
plant by May 2008 to provide 270,000 tons of fresh water a day.
Qatar placed the order in preparation for the 2006 Asian Games in Doha,
its capital. The plant can provide water for about 700,000 people at the same
time, the firm said.
Doosan expects record orders from Middle East countries this year. It
won a $6.5 million order to build a desalinization plant in Libya in February
and a $28 million contract to improve water facilities in Kuwait.
Last year, it secured $1.15 billion in orders for large desalinization
equipment.
``We predict that the Middle Eastern market will grow to 30 trillion won by 2010,’’ Doosan said in a statement. ``Middle Eastern countries are focusing on building desalinization facilities with profits from a surge in international oil prices. Qatar and Oman are emerging as key markets for us.’’
Newspaper: Korea Times
Subject: Doosan Gets OK to Buy
Daewoo Heavy
Date: 17-Mar-2005
Doosan Heavy Industries yesterday received an approval from the government to take over Daewoo Heavy Industries & Machinery.
``We concluded the merger deal does not violate the government's shareholding limit restriction,’’ said Lee Byung-ju, a senior official of the Fair Trade Commission (FTC), the nation’s anti-trust regulator.
He added the FTC also concluded that the merger of the two
companies is unlikely to restrict market competition.
Doosan Heavy signed a contract with the Korea Asset Management Corp. to buy Daewoo Heavy for about 1.89 trillion won in January last year.
The deal, however, faced an unexpected obstacle last December as the Democratic Labor Party requested the FTC to investigate into whether the corporate merger goes against the regulation. The regulation bans conglomerates with more than 5 trillion won in assets from investing more than 25 percent of their net assets in other companies.
Three subsidiaries in which Doosan Heavy made equity investment, including Doosan Mecatec and HSD Engine, are under the regulation and so are banned from making equity investments in affiliates or unrelated companies.
The investment limit will be raised to 6 trillion won from April.
The FTC has allowed two heavy industry companies to merge as they are qualified to be freed from the rule.
It is permissible if firms seeking a merger are in the same business category.
Based on the market share of each company involved, the FTC concluded the subsidiaries of Doosan and Daewoo Heavy are in the same business field _ machinery and equipment manufacturing.
Besides the regulatory huddle, a couple of issues, including labor conflicts, are being left for the merger.
Unionized workers at Daewoo Heavy have been demanding job security from the company's new owner, Doosan Heavy.
The creditors of Daewoo Heavy and Doosan Heavy continue to argue over the takeover price.
Doosan allegedly cut the deal price by 250 billion won to 1.65 trillion from the original 1.89 trillion won, as the company found additional debt during a due diligence.
Industry watchers say, however, Doosan will not blow the deal as the agreement is critical to it achieving the goal of 100 trillion won in sales by 2030.
To reach this goal, Doosan will exert best efforts for the merger and acquisition deals while depending on internal growth.
If Doosan Heavy successfully buys Daewoo Heavy, the size of Doosan Group is expected to expand to the nation’s 12th-largest conglomerate with about 12 trillion won in assets.
In 2004, the Doosan Group posted 2.4 trillion won in sales, a 6.2 percent rise from 2003.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)